The US dollar is losing ground to other major currencies during the early part of Wednesday’s session. The greenback is under renewed pressure as the results of the runoff US Senate elections in Georgia appear to be swinging towards the two Democrat candidates. Should the Republican party lose the two seats, it will also lose the Senate majority and the capability to systematically block President-elect Joe Biden’s planned comprehensive stimulus programs and general legislative agenda. In such a scenario, the dollar decline can be interpreted as a sign that the markets see a Democrat-controlled Senate as favourable for the global economic recovery, which in turn will favour the flight from the safe haven greenback and lead to investments in riskier assets.
